Question

1. Who does protectionism protect and what /who does it protect them from? Who does protectionism hurt and how does it hurt them?

Not hand writhing. Please do typing the answers.

Answer 1

1. Protectionism is a policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors. Protectionist policies have been implemented by many countries despite the fact that virtually all mainstream economists agree that the world economy generally benefits from free trade.

Government-levied tariffs are the chief protectionist measures. They raise the price of imported articles, making them more expensive than domestic products. Protective tariffs have historically been employed to stimulate industries in countries beset by recession or depression.

Protectionism may be helpful to emergent industries in developing nations. It can also serve as a means of fostering self-sufficiency in defense industries. Import quotas offer another means of protectionism.

2. The victims protectionism are consumers. If antidumping duties and quotas are enacted, consumers will pay more for a range of products, including household appliances, new construction, machinery, trucks and automobiles.

Quotas and duties on imported steel will not “protect” U.S. industry. They will profit only a small sector employing fewer than 200,000 production workers. Higher steel prices will endanger jobs in industries that employ 40 times as many workers as does the domestic steel industry.

In the long term, trade protectionism weakens the industry. Without competition, companies within the industry have no need to innovate. Eventually, the domestic product will decline in quality and be more expensive than what foreign competitors produce.